27/03/2015 Global weekly: Eurozone springing to life
Signs of growth are popping up in the eurozone. Manufacturing, growth expectations and even bank lending are showing new signs of life.
20/03/2015 We're not there yet, says the Fed
The Federal Reserve (Fed) on Wednesday struck a more cautious tone with regard to the US economy. Although Fed Chair Janet Yellen indicated that a rate hike in June cannot be ruled out, we now believe it is more likely for the central bank to start lifting rates in September. Equity markets moved higher this week, as investors interpreted the Fed statement as rather dovish. Bond yields continued their decline.
13/03/2015 Global weekly: Mind the gap
The European Central Bank (ECB) is well on track with purchasing government bonds for its monetary easing programme. The bond rally continued and also the European equity market rose. However, the US monetary policy is heading in the opposite direction and so the gap between the world’s largest economies is widening.
06/03/2015 Global weekly: At the starting line
Equity markets rallied with the ECB’s announcement that it will begin government bond purchases on Monday. The central bank also revised its forecasts for eurozone growth upwards.
Equity markets had a good run this week, with the S&P 500 Index reaching an all-time high on Tuesday. On the same day, Federal Reserve Chair Janet Yellen took centre stage. Testifying before US Congress, Yellen confirmed that the Fed will probably not start lifting rates in the next couple of months. Our base scenario still calls for a first rate hike in June. However, a slight delay cannot be ruled out, as US inflation remains subdued.